According to a statement by Standard and Poor’s (S&P): “The Rousseff administration of Brazil has demonstrated its commitment to meeting fiscal targets, thereby enlarging the scope for using monetary tools to influence the domestic economy.” The ratings agency also affirms that guarded economic policies and continued growth will allow Brazil to “moderate the impact of potential external shocks and sustain long-term growth prospects.”
On receiving an upgrade (while other countries’ ratings were reduced), Brazil’s Finance Ministry commented that the action by S&P was “a recognition that Brazilian economic policies are going in the right direction and that economic fundamentals are sound.”
The Government is emphasizing the importance of private participation in its country’s economy, to the point of bringing what it considers outstanding private sector figures to the public sector in an attempt to attract more companies and increase business deals: Goiás’ Governor Marconi Perillo, made business guru Alexandre Baldy his Secretary of Industry and Commerce, and is reaping the benefits of this appointment.
In view of the upcoming World Cup 2014, infrastructure renovation and construction are expected to receive investments totalling R$47 billion (approximately US$29.4 billion). The private sector is expected to participate in the modernization of soccer stadiums, telecommunications, professional training, security, urban mobility, energy and health. Furthermore, concessions are being considered for five airports including Brasilia’s.
Due to the proximity between Goiás and Brasília, a host city, businesses of the region are preparing for tourist influx. According to the Federal Government, the sporting event should have an indirect impact of approximately R$185 billion (US$115.5 billion).
By the end of October 2011, the region had received R$10 billion (US$5 billion)from private initiatives. On a national level, between January and September of this year foreign direct investment reached US$50.4 billion, the highest number ever recorded in Brazilian history, representing an increase of 123% over the same period last year. For 2011, the Central Bank of Brazil foresees a foreign direct investment of over US$60 billion.
0 COMMENTS